A friend would like to have the following answered:
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I wish to gift shares to my parent (retired with no pension) to avail the dividend as income. I have a few questions related to it.
1. Will a Gift Deed need to be made? Will it need to be registered?
2. Will my parent be taxed?
3. Can my parent gift OR will back the shares to me at a later date? Can a HUF be helpful in this matter?
Thanks
1 .yes gift deed needed as share is transferred
2. No your parents will not be taxed but returns will be filled
And taxation will be depends on the income .
3. If they want can return you and sorry I don't understand your last query completely.
Kindly reconfirm the need for gift deed as I understand that in case of share transfer i.e. movable property, a gift deed is advisable to maintain a proper legal record; however it is not mandatory as in case of movable property.
Secondly, it is also requested to reconfirm whether parents need to fill income tax returns just because of receipt of gifted shares or only when their income from shares ( dividend/ Gains on sale) exceeds the basic exemption limit.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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